On Tuesday morning, Gov. Rick Snyder vetoed Senate Bill 64, which amends the laws surrounding corporate officer liability, but much of the language from that bill has been inserted into a new bill the governor intends to sign.

"This bill offered many useful updates to corporate officer liability in our state," Snyder said in a statement. "However, work on this issue continued after the bill was approved, and I am confident that current legislation being considered provides a better solution to these issues."

SB 64, which passed unanimously in both the House and Senate last year, sought to curtail practices by the Michigan Department of Treasury in going after company officials for back taxes, without regard to whether they or their predecessors were responsible.

Members of the business community who are tracking the bill feel Michigan has one of the harshest corporate officer liability statutes in the U.S., and have shared countless stories they felt showed Treasury abusing its power and discouraging investment in the state.

It still is conceivable under current law that someone could be personally assessed for taxes owed for which they were not responsible, for example, if someone joins a company in November and signs the company's tax returns in January that cover the entirety of the previous year. If taxes were owed, much of it likely was accrued before that person joined the company, but Treasury still would be able to go after the individual who signed the tax return.

SB 64 had sought to limit personal liability to the person or persons responsible for collecting the tax or filing returns during the period of default and who did not pay the collected tax.

Treasury officials had said throughout that they were open to changing the law to make clear that an individual would not be liable for any amount owed that came during a time in which that person was not employed at the company.

Much of the language from SB 64 was inserted into Senate Bill 337 last week and approved unanimously by the state House. The Senate this morning approved the bill unanimously, and it awaits Snyder's signature.

Sen. Jack Brandenburg, R-Harrison Township, chair of the Senate Finance Committee and sponsor of the bill, told Crain's last week he had remained in discussions with the administration about his bill and had hoped the governor would sign it. But he said he knew the governor's office had concerns over some of the technical language and that a veto was possible despite the House and Senate's unanimous approval.

SB 337, also sponsored by Brandenburg, requires that Treasury complete a business' tax audit within one year of the date it is commenced.

Business groups have complained that some companies have waited up to a decade for the department to complete an audit. Treasury has contended that when it takes that long, it's because the department is trying to work with the business on a resolution.

Also as part of the bill, the department would have one year to approve or deny a claim for a tax refund. If a decision is not given within one year, the decision will be treated as having been denied. This will allow a business to appeal, rather than waiting indefinitely to know whether to appeal or to expect a refund.